management by objectives

(redirected from Advantages/Merits of Management by objective (MBO))
Also found in: Financial.

management by objectives

A management philosophy in which subordinates are encouraged to share in decisions and policy-making by playing active roles in establishing goals, setting objectives and achieving those goals. Management by objectives (MBO) is a results-oriented, participatory style of management, which can integrate various elements such as planning, organisation and control. It assumes that identification of goals leads to more meaningful, purposeful action on the part of the organisation’s members; MBO allows a free exchange of ideas, information and suggestions, allowing management to understand the thinking of the group, and often reduces the layers of management.